New report says banks hold more real estate debt than thought

Commercial real estate lenders may have much greater risk exposure than publicly recognized in the event of a recession, according to a Fortune article, citing real estate data firm CrediFi. The study deems lenders’ exposure to the retail and industrial property sectors as particularly risky in the event of an economic downturn, as well as declining commercial mortgage–backed securities (CMBS) originations that leave more risk on lenders’ balance sheets. CrediFi tracked more than $925 billion of commercial real estate…

Read More >

IDS Real Estate Group signs 74,525sf lease for logistics center in Washington state

IDS Real Estate Group, in a joint venture with an institutional pension investor, has leased 74,525 square feet of warehouse distribution space to WestRock Corp. at Hogum Bay Logistics Center (HBLC), a 1.1 million-square-foot, three-building logistics campus located at 8000 Hogum Bay Road NE in Lacey, Wash. The lease brings HBLC to 80 percent leased prior to the completion of construction. WestRock is a leading provider of paper and packaging solutions with more than 50,000 employees located in more…

Read More >

Western National Group and Banner Oak Capital Partners launch multifamily investment partnership

Western National Group, a fully integrated multifamily acquisition, development, construction, and property-management firm based in Irvine, Calif., and Banner Oak Capital Partners, a Dallas-based real estate investment management firm focused on providing growth and investment capital to best-in-class operating partners, have launched a strategic joint venture that will invest in multifamily projects throughout California’s major markets.   The programmatic investment vehicle will provide general partner capital, as well as select limited partner capital, for both the acquisition of existing…

Read More >

Credit Benchmark: Risk alarm on U.S. housing and construction going off

The average probability of default for a basket of U.S. household goods and home construction companies has increased more than 3 percent over the past month and by roughly 6 percent since October 2018 (see chart below), according to data from the Commerce Department.   Additionally, the data suggests the issue is widespread, with the majority of companies in this basket experiencing credit-quality deterioration (see chart below). As background, Credit Benchmark data is based on a consensus estimate of credit risk…

Read More >

Unico appoints Lori Hill as senior vice president of investor management

Unico Properties, a private equity real estate investment firm and subsidiary of Unico Investment Group, has named Lori Hill as senior vice president of investor management. With over 20 years of investment sale experience across multiple property types and asset classes, Hill joins Unico from Jones Lang LaSalle (JLL), where she worked as the managing director of capital markets for over seven years. Prior to that, she was a principal with Pacific Real Estate Partners for eight years, and…

Read More >

Growing ‘middle market’ of older adults creates opportunity for U.S. seniors housing & care sector

Fewer than half (46 percent) of America’s middle-income seniors will be able to afford the $60,000 average annual costs of seniors housing and out-of-pocket medical costs in 2029, according to National Investment Center for Seniors Housing & Care (NIC). But if the costs were cut, millions of older adults could benefit. Independent research conducted by NORC at the University of Chicago shows that an additional 5.9 million older adults would be able to afford seniors housing if annual costs…

Read More >

Acadia Realty Trust buys retail center in Daytona Beach, Fla.-area opportunity zone

Acadia Realty Trust has purchased Palm Coast Landing, a 171,352-square-foot, high-performing retail center within an opportunity zone in the Daytona Beach, Fla.–area community of Palm Coast, Fla. HFF team marketed the property on behalf of the seller, a publicly traded REIT.   Completed in 2008, Palm Coast Landing is the largest, most central and most dominant shopping center in Flagler County, which is about 24 miles north of Daytona Beach.  The center is 96.9 percent leased to a variety of…

Read More >

Unico Properties acquires Marymoor Technology Building for $23m

Unico Properties, a subsidiary of Unico Investment Group has purchased the 79,197-square-foot Marymoor Technology Building in Redmond, Wash. from an undisclosed seller for $23.5 million. Representatives from Newmark Knight Frank and Broderick Group, commercial real estate agencies located in Bellevue and Seattle, respectively, represented the sellers in the acquisition, according to a May 13 press release. The property is leased to a single tenant. The Marymoor Technology Building is situated on a 3.44-acre parcel and also includes a 144-stall…

Read More >

Catalyst launches first real estate opportunity zone fund

Catalyst, a double bottom-line private equity firm, has launched its inaugural real estate opportunity zone fund. “We believe that over a 10-year opportunity zone investment horizon, our comprehensive strategy will maximize financial returns and create better outcomes for individual and families,” said Jim Sorenson, a co-founder and Catalyst managing partner. “Our fund is differentiated by our holistic approach to redevelopment that identifies and partners with best-in-class local developers, community and business leaders, government officials, and economic development leaders.” Catalyst…

Read More >

STR: U.S. hotel profits hit all-time high

U.S. revenues topped an estimated $218 billion in 2018, which was an increase of $10 billion from the previous year. Using a same-store analysis for 4,700 hotels that participated in the HOST program in both 2018 and 2017, total labor costs grew 3.2 percent, which was below the 4.0 percent growth levels of 2016 and 2015, but higher than revenue growth for the second straight year. Overall, gross operating profits increased 2.8 percent on 2.9 percent total revenue growth….

Read More >